HR 3981 — Isakson-Roe Education Oversight Expansion Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 TITLE 38, UNITED STATES CODE

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PART III--READJUSTMENT AND RELATED BENEFITS

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CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS

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SUBCHAPTER II--STATE APPROVING AGENCIES

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Sec. 3672. Approval of courses

 (a) An eligible person or veteran shall receive the benefits 
of this chapter and chapters 34 and 35 of this title while 
enrolled in a course of education offered by an educational 
institution only if (1) such course is approved as provided in 
this chapter and chapters 34 and 35 of this title by the State 
approving agency for the State where such educational 
institution is located, or by the Secretary, or (2) such course 
is approved (A) for the enrollment of the particular individual 
under the provisions of section 3536 of this title or (B) for 
special restorative training under subchapter V of chapter 35 
of this title. Approval of courses by State approving agencies 
shall be in accordance with the provisions of this chapter and 
chapters 34 and 35 of this title and such other regulations and 
policies as the State approving agency may adopt. Each State 
approving agency shall furnish the Secretary with a current 
list of educational institutions specifying courses which it 
has approved, and, in addition to such list, it shall furnish 
such other information to the Secretary as it and the Secretary 
may determine to be necessary to carry out the purposes of this 
chapter and chapters 34 and 35 of this title. Each State 
approving agency shall notify the Secretary of the disapproval 
of any course previously approved and shall set forth the 
reasons for such disapproval.
 (b)(1) The Secretary shall be responsible for the approval of 
courses of education offered by any agency of the Federal 
Government authorized under other laws to supervise such 
education. The Secretary may approve any course in any other 
educational institution in accordance with the provisions of 
this chapter and chapters 34 and 35 of this title.
 (2)(A) Subject to sections 3675(b)(1) and (b)(2), 3680A, 
3684, and 3696 of this title, a program of education is deemed 
to be approved for purposes of this chapter if a State 
approving agency, or the Secretary when acting in the role of a 
State approving agency, determines that the program is one of 
the following programs:
 (i) Except as provided in subparagraph (C) or (D), an 
 accredited standard college degree program offered at a 
 public or not-for-profit proprietary educational 
 institution that--
 (I) is accredited by an agency or association 
 recognized for that purpose by the Secretary of 
 Education; and
 (II) is approved and participates in a 
 program under title IV of the Higher Education 
 Act of 1965 (20 U.S.C. 1070 et seq.), unless 
 the Secretary has waived the requirement to 
 participate in a program under title IV of the 
 Higher Education Act of 1965 (20 U.S.C. 1070 et 
 seq.).
 (ii) A flight training course approved by the Federal 
 Aviation Administration that is offered by a certified 
 pilot school that possesses a valid Federal Aviation 
 Administration pilot school certificate.
 (iii) An apprenticeship program registered with the 
 Office of Apprenticeship (OA) of the Employment 
 Training Administration of the Department of Labor or a 
 State apprenticeship agency recognized by the Office of 
 Apprenticeship pursuant to the Act of August 16, 1937 
 (popularly known as the ``National Apprenticeship 
 Act''; 29 U.S.C. 50 et seq.).
 (iv) A program leading to a secondary school diploma 
 offered by a secondary school approved in the State in 
 which it is operating.
 (B) A licensure test offered by a Federal, State, or local 
government is deemed to be approved for purposes of this 
chapter.
 (C) A course that is described in both subparagraph (A)(i) of 
this paragraph and in [paragraph (14) or (15)] paragraph (15) 
or (16) of section 3676(c) of this title shall not be deemed to 
be approved for purposes of this chapter unless--
 (i) a State approving agency, or the Secretary when 
 acting in the role of a State approving agency, 
 determines that the course meets the applicable 
 criteria in such paragraphs; or
 (ii) the Secretary issues a waiver for such course 
 under section 3676(f)(1) of this title.
 (D) A program that is described in subparagraph (A)(i) of 
this paragraph and offered by an educational institution that 
is at risk of losing accreditation shall not be deemed to be 
approved for purposes of this chapter. For purposes of this 
subparagraph, an educational institution is at risk of losing 
accreditation if that educational institution has received from 
the relevant accrediting agency or association a notice 
described in section 3673(e)(2)(D) of this title.
 (c)(1)(A) The State approving agency for a multi-State 
apprenticeship program is--
 (i) for purposes of approval of the program, the 
 State approving agency for the State in which the 
 headquarters of the apprenticeship program is located; 
 and
 (ii) for all other purposes, the State approving 
 agency for the State in which the apprenticeship 
 program takes place.
 (B) In this paragraph, the term ``multi-State apprenticeship 
program'' means a non-Federal apprenticeship program operating 
in more than one State that meets the minimum national program 
standards, as developed by the Department of Labor.
 (2) The period of a program of apprenticeship may be 
determined based upon a specific period of time (commonly 
referred to as a ``time-based program''), based upon the 
demonstration of successful mastery of skills (commonly 
referred to as a ``competency-based program''), or based upon a 
combination thereof.
 (3)(A) In the case of a competency-based program of 
apprenticeship, State approving agencies shall determine the 
period for which payment may be made for such a program under 
chapters 30 and 35 of this title and chapter 1606 of title 10. 
In determining the period of such a program, State approving 
agencies shall take into consideration the approximate term of 
the program recommended in registered apprenticeship program 
standards recognized by the Secretary of Labor.
 (B) The sponsor of a competency-based program of 
apprenticeship shall provide notice to the State approving 
agency involved of any such standards that may apply to the 
program and the proposed approximate period of training under 
the program.
 (4) The sponsor of a competency-based program of 
apprenticeship shall notify the Secretary upon the successful 
completion of a program of apprenticeship by an individual 
under chapter 30 or 35 of this title, or chapter 1606 of title 
10, as the case may be.
 (d)(1) Pursuant to regulations prescribed by the Secretary in 
consultation with the Secretary of Labor, the Secretary and 
State approving agencies shall actively promote the development 
of apprenticeship and on the job training programs for the 
purposes of sections 3677 and 3687 of this title and shall 
utilize the services of disabled veterans' outreach program 
specialists under section 4103A of this title to promote the 
development of such programs. The Secretary of Labor shall 
provide assistance and services to the Secretary, and to State 
approving agencies, to increase the use of apprenticeships.
 (2) In conjunction with outreach services provided by the 
Secretary under chapter 77 of this title for education and 
training benefits, each State approving agency shall conduct 
outreach programs and provide outreach services to eligible 
persons and veterans about education and training benefits 
available under applicable Federal and State law.
 (e) A program of education exclusively by correspondence, and 
the correspondence portion of a combination correspondence-
residence course leading to a vocational objective, that is 
offered by an educational institution (as defined in section 
3452(c) of this title) may be approved only if (1) the 
educational institution is accredited by an entity recognized 
by the Secretary of Education, and (2) at least 50 percent of 
those pursuing such a program or course require six months or 
more to complete the program or course.

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Sec. 3675. Approval of accredited courses

 (a)(1) A State approving agency, or the Secretary when acting 
in the role of a State approving agency, may approve accredited 
programs (including non-degree accredited programs) not covered 
by section 3672 of this title when--
 (A) such courses have been accredited and approved by 
 a nationally recognized accrediting agency or 
 association;
 (B) such courses are conducted under the Act of 
 February 23, 1917 (20 U.S.C. 11 et seq.);
 (C) such courses are accepted by the State department 
 of education for credit for a teacher's certificate or 
 a teacher's degree; or
 (D) such courses are approved by the State as meeting 
 the requirement of regulations prescribed by the 
 Secretary of Health and Human Services under sections 
 1819(f)(2)(A)(i) and 1919(f)(2)(A)(i) of the Social 
 Security Act (42 U.S.C. 1395i-3(f)(2)(A)(i) and 
 1396r(f)(2)(A)(i)).
 (2)(A) For the purposes of this chapter, the Secretary of 
Education shall publish a list of nationally recognized 
accrediting agencies and associations which that Secretary 
determines to be reliable authority as to the quality of 
training offered by an educational institution.
 (B) Except as provided in section 3672(e) of this title, a 
State approving agency may utilize the accreditation of any 
accrediting association or agency listed pursuant to 
subparagraph (A) of this paragraph for approval of courses 
specifically accredited and approved by such accrediting 
association or agency.
 (3)(A) An educational institution shall submit an application 
for approval of courses to the appropriate State approving 
agency. In making application for approval, the institution 
(other than an elementary school or secondary school) shall 
transmit to the State approving agency copies of its catalog or 
bulletin which must be certified as true and correct in content 
and policy by an authorized representative of the institution.
 (B) Each catalog or bulletin transmitted by an institution 
under subparagraph (A) of this paragraph shall--
 (i) state with specificity the requirements of the 
 institution with respect to graduation;
 (ii) include the information required under 
 paragraphs (6) and (7) of section 3676(b) of this 
 title; and
 (iii) include any attendance standards of the 
 institution, if the institution has and enforces such 
 standards.
 (b) As a condition of approval under this section, the State 
approving agency, or the Secretary when acting in the role of a 
State approving agency, must find the following:
 (1) The educational institution keeps adequate 
 records, as prescribed by the State approving agency, 
 or the Secretary when acting in the role of a State 
 approving agency, to show the progress and grades of 
 the eligible person or veteran and to show that 
 satisfactory standards relating to progress and conduct 
 are enforced.
 (2) The educational institution maintains a written 
 record of the previous education and training of the 
 eligible person or veteran that clearly indicates that 
 appropriate credit has been given by the educational 
 institution for previous education and training, with 
 the training period shortened proportionately.
 (3) The educational institution and its approved 
 courses meet the criteria of paragraphs (1), (2), (3), 
 [(14), (15), and (16)] (15), (16), and (17) of section 
 3676(c) of this title (or, with respect to such 
 paragraphs (14) and (15), the requirements under such 
 paragraphs are waived pursuant to subsection (f)(1) of 
 section 3676 of this title).
 (4) The educational institution is approved and 
 participates in a program under title IV of the Higher 
 Education Act of 1965 (20 U.S.C. 1070 et seq.) or the 
 Secretary has waived the requirement under this 
 paragraph with respect to an educational institution 
 and submits to the Committee on Veterans' Affairs of 
 the Senate and the Committee on Veterans' Affairs of 
 the House of Representatives notice of such waiver.
 (5) The educational institution agrees to, not later 
 than 30 days after any date on which such educational 
 institution becomes subject to an action or event 
 described in section 3673(e)(3) of this title, submit 
 to the State approving agency, or the Secretary when 
 acting in the role of a State approving agency, a 
 notification of such action or event in such form and 
 containing such information as the Secretary determines 
 appropriate.
 (c)(1) A State approving agency may approve the 
entrepreneurship courses offered by a qualified provider of 
entrepreneurship courses.
 (2) For purposes of this subsection, the term 
``entrepreneurship course'' means a non-degree, non-credit 
course of business education that enables or assists a person 
to start or enhance a small business concern (as defined 
pursuant to section 3(a) of the Small Business Act (15 U.S.C. 
632(a))).
 (3) Subsection (a) and paragraphs (1) and (2) of subsection 
(b) shall not apply to--
 (A) an entrepreneurship course offered by a qualified 
 provider of entrepreneurship courses; and
 (B) a qualified provider of entrepreneurship courses 
 by reason of such provider offering one or more 
 entrepreneurship courses.
 (4) Notwithstanding paragraph (3), a qualified provider of 
entrepreneurship courses shall maintain such records as the 
Secretary determines to be necessary to comply with reporting 
requirements that apply under section 3684(a)(1) of this title 
with respect to eligible persons and veterans enrolled in an 
entrepreneurship course offered by the provider.
 (d)(1) The Secretary shall submit to Congress an annual 
report on any waivers issued pursuant to subsection (b)(4) or 
section 3672(b)(2)(A)(i) of this title.
 (2) Each report submitted under paragraph (1) shall include, 
for the year covered by the report, the following:
 (A) The name of each educational institution for 
 which a waiver was issued.
 (B) The justification for each such waiver.
 (C) The total number of waivers issued.

Sec. 3676. Approval of nonaccredited courses

 (a) No course of education which has not been approved by a 
State approving agency pursuant to section 3675 of this title, 
which is offered by a public or private, profit or nonprofit, 
educational institution shall be approved for the purposes of 
this chapter unless the educational institution offering such 
course submits to the appropriate State approving agency a 
written application for approval of such course in accordance 
with the provisions of this chapter.
 (b) Such application shall be accompanied by not less than 
two copies of the current catalog or bulletin which is 
certified as true and correct in content and policy by an 
authorized owner or official and includes the following:
 (1) Identifying data, such as volume number and date 
 of publication;
 (2) Names of the institution and its governing body, 
 officials and faculty;
 (3) A calendar of the institution showing legal 
 holidays, beginning and ending date of each quarter, 
 term, or semester, and other important dates;
 (4) Institution policy and regulations on enrollment 
 with respect to enrollment dates and specific entrance 
 requirements for each course;
 (5) Institution policy and regulations relative to 
 leave, absences, class cuts, makeup work, tardiness and 
 interruptions for unsatisfactory attendance;
 (6) Institution policy and regulations relative to 
 standards of progress required of the student by the 
 institution (this policy will define the grading system 
 of the institution, the minimum grades considered 
 satisfactory, conditions for interruption for 
 unsatisfactory grades or progress and a description of 
 the probationary period, if any, allowed by the 
 institution, and conditions of reentrance for those 
 students dismissed for unsatisfactory progress. A 
 statement will be made regarding progress records kept 
 by the institution and furnished the student);
 (7) Institution policy and regulations relating to 
 student conduct and conditions for dismissal for 
 unsatisfactory conduct;
 (8) Detailed schedules of fees, charges for tuition, 
 books, supplies, tools, student activities, laboratory 
 fees, service charges, rentals, deposits, and all other 
 charges;
 (9) Policy and regulations of the institution 
 relative to the refund of the unused portion of 
 tuition, fees, and other charges in the event the 
 student does not enter the course or withdraws or is 
 discontinued therefrom;
 (10) A description of the available space, 
 facilities, and equipment;
 (11) A course outline for each course for which 
 approval is requested, showing subjects or units in the 
 course, type of work or skill to be learned, and 
 approximate time and clock hours to be spent on each 
 subject or unit; and
 (12) Policy and regulations of the institution 
 relative to granting credit for previous educational 
 training.
 (c) The appropriate State approving agency may approve the 
application of such institution when the institution and its 
non-accredited courses are found upon investigation to have met 
the following criteria:
 (1) The courses, curriculum, and instruction are 
 consistent in quality, content, and length with similar 
 courses in public schools and other private schools in 
 the State, with recognized accepted standards.
 (2) There is in the institution adequate space, 
 equipment, instructional material, and instructor 
 personnel to provide training of good quality.
 (3) Educational and experience qualifications of 
 directors, administrators, and instructors are 
 adequate.
 (4) The institution maintains a written record of the 
 previous education and training of the eligible person 
 and clearly indicates that appropriate credit has been 
 given by the institution for previous education and 
 training, with the training period shortened 
 proportionately and the eligible person so notified.
 (5) A copy of the course outline, schedule of 
 tuition, fees, and other charges, regulations 
 pertaining to absence, grading policy, and rules of 
 operation and conduct will be furnished the eligible 
 person upon enrollment.
 (6) Upon completion of training, the eligible person 
 is given a certificate by the institution indicating 
 the approved course and indicating that training was 
 satisfactorily completed.
 (7) Adequate records as prescribed by the State 
 approving agency are kept to show attendance and 
 progress or grades, and satisfactory standards relating 
 to attendance, progress, and conduct are enforced.
 (8) The institution complies with all local, city, 
 county, municipal, State, and Federal regulations, such 
 as fire codes, building and sanitation codes. The State 
 approving agency may require such evidence of 
 compliance as is deemed necessary.
 (9) The institution is financially sound and capable 
 of fulfilling its commitments for training.
 (10) The institution, and any entity that owns the 
 institution, does not engage in substantial 
 misrepresentation described in section 3696(e) of this 
 title. The institution shall not be deemed to have met 
 this requirement until the State approving agency--
 (A) has ascertained that no Federal 
 department or agency has taken a punitive 
 action, not including a settlement agreement, 
 against the school for misleading or deceptive 
 practices;
 (B) has, if such an order has been issued, 
 given due weight to that fact; and
 (C) has reviewed the complete record of 
 advertising, sales, or enrollment materials 
 (and copies thereof) used by or on behalf of 
 the institution during the preceding 12-month 
 period.
 (11) The institution does not exceed its enrollment 
 limitations as established by the State approving 
 agency.
 (12) The institution's administrators, directors, 
 owners, and instructors are of good reputation and 
 character.
 (13) The institution has and maintains a policy for 
 the refund of the unused portion of tuition, fees, and 
 other charges in the event the eligible person fails to 
 enter the course or withdraws or is discontinued 
 therefrom at any time before completion and--
 (A) in the case of an institution (other than 
 (i) a Federal, State, or local Government 
 institution or (ii) an institution described in 
 subparagraph (B)), such policy provides that 
 the amount charged to the eligible person for 
 tuition, fees, and other charges for a portion 
 of the course shall not exceed the approximate 
 pro rata portion of the total charges for 
 tuition, fees, and other charges that the 
 length of the completed portion of the course 
 bears to its total length; or
 (B) in the case of an institution that is a 
 nonaccredited public educational institution, 
 the institution has and maintains a refund 
 policy regarding the unused portion of tuition, 
 fees, and other charges that is substantially 
 the same as the refund policy followed by 
 accredited public educational institutions 
 located within the same State as such 
 institution.
 (14) The institution agrees to, not later than 30 
 days after any date on which such institution becomes 
 subject to an action or event described in section 
 3673(e)(3) of this title, submit to the State approving 
 agency, or the Secretary when acting in the role of a 
 State approving agency, a notification of such action 
 or event in such form and containing such information 
 as the Secretary determines appropriate.
 [(14)] (15) In the case of a course designed to 
 prepare an individual for licensure or certification in 
 a State, the course--
 (A) meets all instructional curriculum 
 licensure or certification requirements of such 
 State; and
 (B) in the case of a course designed to 
 prepare an individual for licensure to practice 
 law in a State, is accredited by a specialized 
 accrediting agency for programs of legal 
 education or association recognized by the 
 Secretary of Education under subpart 2 of part 
 H of title IV of the Higher Education Act of 
 1965 (20 U.S.C. 1099b), from which recipients 
 of law degrees from such accredited programs 
 are eligible to sit for a bar examination in 
 any State.
 [(15)] (16) In the case of a course designed to 
 prepare an individual for employment pursuant to 
 standards developed by a board or agency of a State in 
 an occupation that requires approval, licensure, or 
 certification, the course--
 (A) meets such standards; and
 (B) in the case of a course designed to 
 prepare an individual for licensure to practice 
 law in a State, is accredited by a specialized 
 accrediting agency for programs of legal 
 education or association recognized by the 
 Secretary of Education under subpart 2 of part 
 H of title IV of the Higher Education Act of 
 1965 (20 U.S.C. 1099b), from which recipients 
 of law degrees from such accredited programs 
 are eligible to sit for a bar examination in 
 any State.
 [(16)] (17) Such additional criteria as may be deemed 
 necessary by the State approving agency if the 
 Secretary, in consultation with the State approving 
 agency and pursuant to regulations prescribed to carry 
 out this paragraph, determines such criteria are 
 necessary and treat public, private, and proprietary 
 for-profit educational institutions equitably.
 (d) The Secretary may waive, in whole or in part, the 
requirements of subsection (c)(13) of this section in the case 
of an educational institution which--
 (1) is a college, university, or similar institution 
 offering postsecondary level academic instruction that 
 leads to an associate or higher degree,
 (2) is operated by an agency of a State or of a unit 
 of local government,
 (3) is located within such State or, in the case of 
 an institution operated by an agency of a unit of local 
 government, within the boundaries of the area over 
 which such unit has taxing jurisdiction, and
 (4) is a candidate for accreditation by a regional 
 accrediting association,
if the Secretary determines, pursuant to regulations which the 
Secretary shall prescribe, that such requirements would work an 
undue administrative hardship because the total amount of 
tuition, fees, and other charges at such institution is 
nominal.
 (e) Notwithstanding any other provision of this title, a 
course of education shall not be approved under this section if 
it is to be pursued in whole or in part by independent study.
 (f)(1) The Secretary may waive the requirements of paragraph 
(14) or (15) of subsection (c) in the case of a course of 
education offered by an educational institution (either 
accredited or not accredited) if the Secretary determines all 
of the following:
 (A) The educational institution is not accredited by 
 an agency or association recognized by the Secretary of 
 Education.
 (B) The course did not meet the requirements of such 
 paragraph at any time during the 2-year period 
 preceding the date of the waiver.
 (C) The waiver furthers the purposes of the 
 educational assistance programs administered by the 
 Secretary or would further the education interests of 
 individuals eligible for assistance under such 
 programs.
 (D) The educational institution does not provide any 
 commission, bonus, or other incentive payment based 
 directly or indirectly on success in securing 
 enrollments or financial aid to any persons or entities 
 engaged in any student recruiting or admission 
 activities or in making decisions regarding the award 
 of student financial assistance, except for the 
 recruitment of foreign students residing in foreign 
 countries who are not eligible to receive Federal 
 student assistance.
 (2) Not later than 30 days after the date on which the 
Secretary issues a waiver under paragraph (1), the Secretary 
shall submit to Congress notice of such waiver and a 
justification for issuing such waiver.

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Sec. 3679. Disapproval of courses

 (a)(1) Except as provided by paragraph (2), any course 
approved for the purposes of this chapter which fails to meet 
any of the requirements of this chapter (including failure to 
comply with a risk-based survey under this chapter or secure an 
affirmation of approval by the appropriate State approving 
agency following the survey) shall be immediately disapproved 
by the Secretary or the appropriate State approving agency. An 
educational institution which has its courses disapproved by 
the Secretary or a State approving agency will be notified of 
such disapproval by a certified or registered letter of 
notification and a return receipt secured.
 (2) In the case of a course of education that would be 
subject to disapproval under paragraph (1) solely for the 
reason that the Secretary of Education withdraws the 
recognition of the accrediting agency that accredited the 
course, the Secretary of Veterans Affairs, in consultation with 
the Secretary of Education, and notwithstanding the withdrawal, 
may continue to treat the course as an approved course of 
education under this chapter for a period not to exceed 18 
months from the date of the withdrawal of recognition of the 
accrediting agency, unless the Secretary of Veterans Affairs or 
the appropriate State approving agency determines that there is 
evidence to support the disapproval of the course under this 
chapter. The Secretary shall provide to any veteran enrolled in 
such a course of education notice of the status of the course 
of education.
 (3) In this section, the term ``risk-based survey'' means a 
risk-based survey developed under section 3673A(a) of this 
title.
 (b) Each State approving agency shall notify the Secretary of 
each course which it has disapproved under this section. The 
Secretary shall notify the State approving agency of the 
Secretary's disapproval of any educational institution under 
chapter 31 of this title.
 (c)(1) Notwithstanding any other provision of this chapter 
and subject to paragraphs (3) through (6), the Secretary shall 
disapprove a course of education provided by a public 
institution of higher learning if the institution charges 
tuition and fees for that course for covered individuals who 
are pursuing the course with educational assistance under 
chapter 30, 31, 33, or 35 of this title while living in the 
State in which the institution is located at a rate that is 
higher than the rate the institution charges for tuition and 
fees for that course for residents of the State in which the 
institution is located, regardless of the covered individual's 
State of residence.
 (2) For purposes of this subsection, a covered individual is 
any individual as follows:
 (A) A veteran who was discharged or released from a 
 period of not fewer than 90 days of service in the 
 active military, naval, air, or space service.
 (B) An individual who is entitled to assistance 
 under--
 (i) section 3311(b)(8) of this title; or
 (ii) section 3319 of this title by virtue of 
 the individual's relationship to--
 (I) a veteran described in 
 subparagraph (A); or
 (II) a member of the uniformed 
 services described in section 3319(b) 
 of this title who is serving on active 
 duty.
 (C) An individual who is entitled to rehabilitation 
 under section 3102(a) of this title.
 (D) An individual who is entitled to assistance under 
 section 3510 of this title.
 (3) If after enrollment in a course of education that is 
subject to disapproval under paragraph (1) by reason of 
paragraph (2)(A), (2)(B), or (2)(C) a covered individual 
pursues one or more courses of education at the same public 
institution of higher learning while remaining continuously 
enrolled (other than during regularly scheduled breaks between 
courses, semesters or terms) at that institution of higher 
learning, any course so pursued by the covered individual at 
that institution of higher learning while so continuously 
enrolled shall also be subject to disapproval under paragraph 
(1).
 (4)(A) It shall not be grounds to disapprove a course of 
education under paragraph (1) if a public institution of higher 
learning requires a covered individual pursuing a course of 
education at the institution to demonstrate an intent, by means 
other than satisfying a physical presence requirement, to 
establish residency in the State in which the institution is 
located, or to satisfy other requirements not relating to the 
establishment of residency, in order to be charged tuition and 
fees for that course at a rate that is equal to or less than 
the rate the institution charges for tuition and fees for that 
course for residents of the State.
 (B) To the extent feasible, the Secretary shall make publicly 
available on the internet website of the Department a database 
explaining any requirements described in subparagraph (A) that 
are established by a public institution of higher learning for 
an individual to be charged tuition and fees at a rate that is 
equal to or less than the rate the institution charges for 
tuition and fees for residents of the State in which the 
institution is located. The Secretary shall disapprove a course 
of education provided by such an institution that does not 
provide the Secretary--
 (i) an initial explanation of such requirements; and
 (ii) not later than 90 days after the date on which 
 any such requirements change, the updated requirements.
 (5) The Secretary may waive such requirements of paragraph 
(1) as the Secretary considers appropriate.
 (6) Disapproval under paragraph (1) shall apply only with 
respect to educational assistance under chapters 30, 31, 33, 
and 35 of this title.
 (d) Notwithstanding any other provision of this chapter, the 
Secretary or the applicable State approving agency shall 
disapprove a course of education [described in paragraph (14) 
or (15)] described in paragraph (15) or (16) of section 3676(c) 
of this title unless the educational institution providing the 
course of education--
 (1) publicly discloses any conditions or additional 
 requirements, including training, experience, or 
 examinations, required to obtain the license, 
 certification, or approval for which the course of 
 education is designed to provide preparation; and
 (2) makes each disclosure required by paragraph (1) 
 in a manner that the Secretary considers prominent (as 
 specified by the Secretary in regulations prescribed 
 for purposes of this subsection).
 (e)(1) Notwithstanding any other provision of this chapter, 
beginning on August 1, 2019, a State approving agency, or the 
Secretary when acting in the role of the State approving 
agency, shall disapprove a course of education provided by an 
educational institution that has in effect a policy that is 
inconsistent with any of the following:
 (A) A policy that permits any covered individual to 
 attend or participate in the course of education during 
 the period beginning on the date on which the 
 individual provides to the educational institution a 
 certificate of eligibility for entitlement to 
 educational assistance under chapter 31, 33, or 35 of 
 this title and ending on the earlier of the following 
 dates:
 (i) The date on which the Secretary provides 
 payment for such course of education to such 
 institution.
 (ii) The date that is 90 days after the date 
 on which the educational institution certifies 
 for tuition and fees following receipt from the 
 student such certificate of eligibility.
 (B) A policy that ensures that the educational 
 institution will not impose any penalty, including the 
 assessment of late fees, the denial of access to 
 classes, libraries, or other institutional facilities, 
 or the requirement that a covered individual borrow 
 additional funds, on any covered individual because of 
 the individual's inability to meet his or her financial 
 obligations to the institution due to the delayed 
 disbursement of a payment to be provided by the 
 Secretary under chapter 31 33, or 35 of this title.
 (2) For purposes of this subsection, a covered individual is 
any individual who is entitled to educational assistance under 
chapter 31 1 33, or 35 of this title.
 (3) The Secretary may waive such requirements of paragraph 
(1) as the Secretary considers appropriate.
 (4) It shall not be inconsistent with a policy described in 
paragraph (1) for an educational institution to require a 
covered individual to take the following additional actions:
 (A) Submit a certificate of eligibility for 
 entitlement to educational assistance not later than 
 the first day of a course of education for which the 
 individual has indicated the individual wishes to use 
 the individual's entitlement to educational assistance.
 (B) Submit a written request to use such entitlement.
 (C) Provide additional information necessary to the 
 proper certification of enrollment by the educational 
 institution.
 (f)(1) Except as provided by paragraph (5), a State approving 
agency, or the Secretary when acting in the role of the State 
approving agency, shall take an action described in paragraph 
(4)(A) if the State approving agency or the Secretary, when 
acting in the role of the State approving agency, determines 
that an educational institution does not perform any of the 
following:
 (A) Prior to the enrollment of a covered individual 
 in a course of education at the educational 
 institution, provide the individual with a form that 
 contains information personalized to the individual 
 that describes--
 (i) the estimated total cost of the course, 
 including tuition, fees, books, supplies, and 
 any other additional costs;
 (ii) an estimate of the cost for living 
 expenses for students enrolled in the course;
 (iii) the amount of the costs under clauses 
 (i) and (ii) that are covered by the 
 educational assistance provided to the 
 individual under chapter 30, 31, 32, 33, or 35 
 of this title, or chapter 1606 or 1607 of title 
 10, as the case may be;
 (iv) the type and amount of Federal financial 
 aid not administered by the Secretary and 
 financial aid offered by the institution that 
 the individual may qualify to receive;
 (v) an estimate of the amount of student loan 
 debt the individual would have upon graduation;
 (vi) information regarding graduation rates;
 (vii) job-placement rates for graduates of 
 the course, if available;
 (viii) information regarding the acceptance 
 by the institution of transfer of credits, 
 including military credits;
 (ix) any conditions or additional 
 requirements, including training, experience, 
 or examinations, required to obtain the 
 license, certification, or approval for which 
 the course of education is designed to provide 
 preparation; and
 (x) other information to facilitate 
 comparison by the individual of aid packages 
 offered by different educational institutions.
 (B) Not later than 15 days after the date on which 
 the institution (or the governing body of the 
 institution) determines tuition rates and fees for an 
 academic year that is different than the amount being 
 charged by the institution, provide a covered 
 individual enrolled in a course of education at the 
 educational institution with the form under 
 subparagraph (A) that contains updated information.
 (C) Maintain policies to--
 (i) inform each covered individual enrolled 
 in a course of education at the educational 
 institution of the availability of Federal 
 financial aid not administered by the Secretary 
 and financial aid offered by the institution; 
 and
 (ii) alert such individual of the potential 
 eligibility of the individual for such 
 financial aid before packaging or arranging 
 student loans or alternative financing programs 
 for the individual.
 (D) Maintain policies to--
 (i) prohibit the automatic renewal of a 
 covered individual in courses and programs of 
 education; and
 (ii) ensure that each covered individual 
 approves of the enrollment of the individual in 
 a course.
 (E) Provide to a covered individual enrolled in a 
 course of education at the educational institution with 
 information regarding the requirements to graduate from 
 such course, including, to the maximum extent 
 practicable, information regarding when required 
 classes will be offered and a timeline to graduate.
 (F) With respect to an accredited educational 
 institution, obtain the approval of the accrediting 
 agency for each new course or program of the 
 institution before enrolling covered individuals in 
 such courses or programs if the accrediting agency 
 determines that such approval is appropriate under the 
 substantive change requirements of the accrediting 
 agency regarding the quality, objectives, scope, or 
 control of the institution.
 (G) Maintain a policy that--
 (i) ensures that members of the Armed Forces, 
 including the reserve components and the 
 National Guard, who enroll in a course of 
 education at the educational institution may be 
 readmitted at such institution if such members 
 are temporarily unavailable or have to suspend 
 such enrollment by reason of serving in the 
 Armed Forces; and
 (ii) otherwise accommodates such members 
 during short absences by reason of such 
 service.
 (H) Designate an employee of the educational 
 institution to serve as a point of contact for covered 
 individuals and the family of such individuals needing 
 assistance with respect to academic counseling, 
 financial counseling, disability counseling, and other 
 information regarding completing a course of education 
 at such institution, including by referring such 
 individuals and family to the appropriate persons for 
 such counseling and information.
 (I) Comply with the notification requirements under 
 sections 3675(b)(5) and 3676(c)(14) of this title, when 
 applicable.
 (2) Except as provided by paragraph (5), a State approving 
agency, or the Secretary when acting in the role of the State 
approving agency, shall take an action described in paragraph 
(4)(A) if the State approving agency, the Secretary, or any 
Federal agency, determines that an educational institution, or 
any person with whom the institution has an agreement to 
provide educational programs, marketing, advertising, 
recruiting or admissions services, does any of the following:
 (A) Carries out deceptive or persistent recruiting 
 techniques, including on military installations, that 
 may include--
 (i) misrepresentation (as defined in section 
 3696(e)(2)(B) of this title) or payment of 
 incentive compensation;
 (ii) during any one-month period making three 
 or more unsolicited contacts to a covered 
 individual, including contacts by phone, email, 
 or in-person; or
 (iii) engaging in same-day recruitment and 
 registration.
 (B) Provides a commission, bonus, or other incentive 
 payment based directly or indirectly on success in 
 securing enrollments or financial aid to any persons or 
 entities engaged in any student recruiting or admission 
 activities or in making decisions regarding the award 
 of student financial assistance, except for the 
 recruitment of foreign students residing in foreign 
 countries who are not eligible to receive Federal 
 student assistance.
 (C) In determining whether a violation of 
 subparagraph (B) has occurred, the State approving 
 agency, or the Secretary when acting in the place of 
 the State approving agency, shall construe the 
 requirements of this paragraph in accordance with the 
 regulations and guidance prescribed by the Secretary of 
 Education under section 487(a)(20) of the Higher 
 Education Act of 1965 (20 U.S.C. 1094(a)(20)).
 (3) A State approving agency, or the Secretary when acting in 
the role of the State approving agency, shall take an action 
described in paragraph (4)(A) if the State approving agency or 
the Secretary, when acting in the role of the State approving 
agency, determines that an educational institution is the 
subject of a negative action made by the accrediting agency 
that accredits the institution, including any of the following:
 (A) Accreditor sanctions.
 (B) Accreditation probation.
 (C) The loss of accreditation or candidacy for 
 accreditation.
 (4)(A) An action described in this subparagraph is any of the 
following:
 (i) Submitting to the Secretary a recommendation that 
 the Secretary publish a warning on the internet website 
 of the Department described in section 3698(c)(2) of 
 this title, or such other similar internet website of 
 the Department, that describes how an educational 
 institution is failing to meet a requirement under 
 paragraph (1), (2), or (3).
 (ii) Suspending the approval of the courses and 
 programs of education offered by the educational 
 institution by disapproving new enrollments of eligible 
 veterans and eligible persons in each course or program 
 of education offered by that educational institution.
 (iii) Revoking the approval of the courses and 
 programs of education offered by the educational 
 institution by disapproving all enrollments of eligible 
 veterans and eligible persons in each course or program 
 of education offered by that educational institution
 (B)(i) The Secretary shall establish guidelines to ensure 
that the actions described in subparagraph (A) are applied in a 
proportional and uniform manner by State approving agencies, or 
the Secretary when acting in the role of the State approving 
agency.
 (ii) Each State approving agency and the Secretary, when 
acting in the role of the State approving agency, shall adhere 
to the guidelines established under clause (i).
 (C) The State approving agency, in consultation with the 
Secretary, or the Secretary when acting in the role of the 
State approving agency, may limit an action described in 
subparagraph (A)(ii) to individuals not enrolled at the 
educational institution before the period described in such 
subparagraph.
 (5)(A) The Secretary may waive the requirements of paragraph 
(1) or waive the requirements of paragraph (2) with respect to 
an educational institution for a one-academic-year period 
beginning in August of the year in which the waiver is made. A 
single educational institution may not receive waivers under 
this paragraph for more than 2 consecutive academic years.
 (B) To be considered for a waiver under this paragraph, an 
educational institution shall submit to the Secretary an 
application prior to the first day of the academic year for 
which the waiver is sought.
 (6) Not later than October 1 of each year, the Secretary 
shall submit to the Committee on Veterans' Affairs of the 
Senate and the Committee on Veterans' Affairs of the House of 
Representatives the following reports:
 (A) A report, which shall be made publicly available, 
 that includes the following:
 (i) A summary of each action described in 
 paragraph (4)(A) made during the year covered 
 by the report, including--
 (I) the name of the educational 
 institution;
 (II) the type of action taken;
 (III) the rationale for the action, 
 including how the educational 
 institution was not in compliance with 
 this subsection;
 (IV) the length of time that the 
 educational institution was not in such 
 compliance; and
 (V) whether the educational 
 institution was also not in compliance 
 with this subsection during any of the 
 2 years prior to the year covered by 
 the report.
 (ii) A summary and justifications for the 
 waivers made under paragraph (5) during the 
 year covered by the report, including the total 
 number of waivers each educational institution 
 has received.
 (B) A report containing the recommendations of the 
 Secretary with respect to any legislative actions the 
 Secretary determines appropriate to ensure that this 
 subsection is carried out in a manner that is 
 consistent with the requirements that educational 
 institutions must meet for purposes of other 
 departments or agencies of the Federal Government.
 (7) This subsection shall not apply to an educational 
institution--
 (A) located in a foreign country; or
 (B) that provides to a covered individual consumer 
 information regarding costs of the program of education 
 (including financial aid available to such covered 
 individual) using a form or template developed by the 
 Secretary of Education.
 (8) In this subsection, the term ``covered individual'' means 
an individual who is pursuing a course of education at an 
educational institution under chapter 30, 31, 32, 33, or 35 of 
this title, or chapter 1606 or 1607 of title 10.

SUBCHAPTER III--MISCELLANEOUS PROVISIONS

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Sec. 3680A. Disapproval of enrollment in certain courses

 (a) The Secretary shall not approve the enrollment of an 
eligible veteran in any of the following:
 (1) Any bartending course or personality development 
 course.
 (2) Any sales or sales management course which does 
 not provide specialized training within a specific 
 vocational field.
 (3) Any type of course which the Secretary finds to 
 be avocational or recreational in character (or the 
 advertising for which the Secretary finds contains 
 significant avocational or recreational themes) unless 
 the veteran submits justification showing that the 
 course will be of bona fide use in the pursuit of the 
 veteran's present or contemplated business or 
 occupation.
 (4) Any independent study program except an 
 independent study program (including such a program 
 taken over open circuit television) that--
 (A) is accredited by an accrediting agency or 
 association recognized by the Secretary of 
 Education under subpart 2 of part H of title IV 
 of the Higher Education Act of 1965 (20 U.S.C. 
 1099b);
 (B) leads to--
 (i) a standard college degree;
 (ii) a certificate that reflects 
 educational attainment offered by an 
 institution of higher learning; or
 (iii) a certificate that reflects 
 completion of a course of study offered 
 by--
 (I) an area career and 
 technical education school (as 
 defined in subparagraphs (C) 
 and (D) of section 3(3) of the 
 Carl D. Perkins Career and 
 Technical Education Act of 2006 
 (20 U.S.C. 2302(3))) that 
 provides education at the 
 postsecondary level; or
 (II) a postsecondary 
 vocational institution (as 
 defined in section 102(c) of 
 the Higher Education Act of 
 1965 (20 U.S.C. 1002(c))) that 
 provides education at the 
 postsecondary level; and
 (C) in the case of a program described in 
 subparagraph (B)(iii)--
 (i) provides training aligned with 
 the requirements of employers in the 
 State or local area where the program 
 is located, which may include in-demand 
 industry sectors or occupations; and
 (ii) provides a student, upon 
 completion of the program, with a 
 recognized postsecondary credential 
 that is recognized by employers in the 
 relevant industry, which may include a 
 credential recognized by industry or 
 sector partnerships in the State or 
 local area where the industry is 
 located; and
 (iii) meets such content and 
 instructional standards as may be 
 required to comply with the criteria 
 under [section 3676(c)(14) and (15)] 
 section 3676(c)(15) and (16) of this 
 title.
 (b) Except to the extent otherwise specifically provided in 
this title or chapter 106 of title 10, the Secretary shall not 
approve the enrollment of an eligible veteran in any course of 
flight training other than one given by an educational 
institution of higher learning for credit toward a standard 
college degree the eligible veteran is seeking.
 (c) The Secretary shall not approve the enrollment of an 
eligible veteran in any course to be pursued by radio.
 (d)(1) The Secretary shall not approve the enrollment of any 
eligible veteran, not already enrolled, in any course for any 
period during which the Secretary finds that more than 85 
percent of the students enrolled in the course are having all 
or part of their tuition, fees, or other charges paid to or for 
them by the educational institution or by the Department of 
Veterans Affairs under this title or under chapter 1606 of 
title 10, except with respect to tuition, fees, or other 
charges that are paid under a payment plan at an educational 
institution that the Secretary determines has a history of 
offering payment plans that are completed not later than 180 
days after the end of the applicable term, quarter, or 
semester.
 (2) The Secretary may waive the requirements of paragraph 
(1), in whole or in part, if the Secretary determines, pursuant 
to regulations which the Secretary shall prescribe, it to be in 
the interest of the eligible veteran and the Federal 
Government.
 (3)(A) The Secretary shall establish a process by which an 
educational institution may request a review of a determination 
that the educational institution does not meet the requirements 
of paragraph (1).
 (B) An educational institution that requests a review under 
subparagraph (A)--
 (i) shall request the review not later than 30 days 
 after the start of the term, quarter, or semester for 
 which the determination described in subparagraph (A) 
 applies; and
 (ii) may include any information that the educational 
 institution believes the Department should have taken 
 into account when making the determination, including 
 with respect to any mitigating circumstances.
 (C) The Under Secretary of Benefits shall issue an initial 
decision for each review requested under subparagraph (A) by 
not later than 30 days after the date of the request, to the 
extent feasible.
 (D) An educational institution may request the Secretary to 
review the decision by the Under Secretary under subparagraph 
(C). The Secretary shall review each decision so requested and, 
pursuant to such review, shall issue a final decision 
sustaining, modifying, or overturning the decision by the Under 
Secretary.
 (E) The Secretary shall carry out this paragraph without 
regard to any review process carried out by the Secretary under 
chapter 51 of this title.
 (4) Paragraph (1) shall not apply to any course offered by an 
educational institution if--
 (A) the majority of courses offered by the 
 educational institution are approved under section 3672 
 or 3675 of this title; and
 (B) the total number of veterans and persons 
 receiving assistance under this title or under chapter 
 1606 of title 10 who are enrolled in such institution 
 equals 35 percent or less of the total student 
 enrollment at such institution (computed separately for 
 the main campus and any branch or extension of such 
 institution).
 (5)(A) Paragraph (1) shall not apply to any course offered by 
an educational institution if--
 (i) the majority of courses offered by the 
 educational institution are approved under section 3676 
 of this title; and
 (ii) the total number of veterans and persons 
 receiving assistance under this title or under chapter 
 1606 of title 10 who are enrolled in such institution 
 equals 35 percent or less of the total student 
 enrollment at such institution (computed separately for 
 the main campus and any branch or extension of such 
 institution).
 (B) Notwithstanding subparagraph (A), on a case by case 
basis, the Secretary may apply paragraph (1) with respect to 
any course otherwise covered by such subparagraph if the 
Secretary has reason to believe that the enrollment of veterans 
and persons described in clause (ii) of such subparagraph may 
be in excess of 85 percent of the total student enrollment in 
such course.
 (6) The Secretary shall ensure that an educational 
institution that meets the requirements of paragraph (4) or (5) 
submits information to the Secretary on a biennial basis to 
verify meeting such requirements. During such biennial period 
in which an educational institution is covered by such 
verification, the Secretary may not require the educational 
institution to submit information with respect to meeting the 
requirements of paragraph (1).
 (7) Paragraph (1) shall not apply with respect to the 
enrollment of a veteran--
 (A) in a program of education for which fewer than 10 
 students are having all or part of their tuition, fees, 
 or other charges paid to or for them by the educational 
 institution or by the Department of Veterans Affairs 
 under this title or under chapter 1606 of title 10;
 (B) in a course offered pursuant to section 3019, 
 3034(a)(3), 3234, or 3241(a)(2) of this title;
 (C) in a farm cooperative training course; or
 (D) in a course described in subsection (g).
 (e) The Secretary may not approve the enrollment of an 
eligible veteran in a course not leading to a standard college 
degree offered by a proprietary profit or proprietary nonprofit 
educational institution if--
 (1) the educational institution has been operating 
 for less than two years;
 (2) the course is offered at a branch of the 
 educational institution and the branch has been 
 operating for less than two years; or
 (3) following either a change in ownership or a 
 complete move outside its original general locality, 
 the educational institution does not retain 
 substantially the same faculty, student body, and 
 courses as before the change in ownership or the move 
 outside the general locality (as determined in 
 accordance with regulations the Secretary shall 
 prescribe) unless the educational institution following 
 such change or move has been in operation for at least 
 two years.
 (f)(1) Except as provided in paragraph (2), the Secretary may 
not approve the enrollment of an eligible veteran in a course 
as a part of a program of education offered by an educational 
institution if the course is provided under contract by another 
educational institution or entity and--
 (A) the Secretary would be barred under subsection 
 (e) from approving the enrollment of an eligible 
 veteran in the course of the educational institution or 
 entity providing the course under contract; or
 (B) the educational institution or entity providing 
 the course under contract has not obtained approval for 
 the course under this chapter.
 (2)(A) In the case of a covered study-abroad course, the 
Secretary may approve the course for a period of not more than 
five years, if the contract or other written agreement under 
which the course is offered provides that--
 (i) the educational institution that offers a course 
 that is approved under this chapter agrees--
 (I) to assume responsibility for the quality 
 and content of the covered study-abroad course; 
 and
 (II) to serve as the certifying official for 
 the course for purposes of this chapter; and
 (ii) the educational institution that offers the 
 covered study-abroad course agrees to seek the approval 
 of the course under this chapter by not later than five 
 years after the date of the agreement.
 (B) In this paragraph, the term ``covered study-abroad 
course'' means a course that--
 (i) is provided as a part of a program of education 
 offered by an educational institution under a contract 
 or other written agreement by another educational 
 institution that offers a course that is approved under 
 this chapter;
 (ii) is provided at a location in a foreign country; 
 and
 (iii) has not been approved under this chapter.
 (g) Notwithstanding subsections (e) and (f)(1), the Secretary 
may approve the enrollment of an eligible veteran in a course 
approved under this chapter if the course is offered by an 
educational institution under contract with the Department of 
Defense or the Department of Homeland Security and is given on 
or immediately adjacent to a military base, Coast Guard 
station, National Guard facility, or facility of the Selected 
Reserve.
 (h) In this section, the terms ``State or local area'', 
``recognized postsecondary credential'', ``industry or sector 
partnership'', and ``in-demand industry sector or occupation'' 
have the meaning given such terms in section 3 of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102).

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